Reach Energy Berhad : Report on Unaudited Quarterly Financial Results for the Period 1 Jan 2022 to 31 Mar 2022

REACH ENERGY

BERHAD

Company no: 201301004557 (1034400-D)

(Incorporated in Malaysia)

Report

on

Unaudited

Quarterly Financial Results

for the Period

1 Jan 2022

to

31 Mar 2022

(The figures have not been audited)

REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		INDIVIDUAL		INDIVIDUAL		CUMULATIVE		CUMULATIVE
		QUARTER		QUARTER		QUARTER		QUARTER
		Unaudited for		Unaudited for		Unaudited		Unaudited for
		the quarter		the quarter		for the year		the year
		ended		ended		ended		ended
		31 Mar 22		31 Mar 21		31 Mar 22		31 Mar 21
	Note	RM'000		RM'000		RM'000		RM'000
Revenue		51,219	23,057	51,219	23,057
Operating expenses
Taxes other than income taxes		(14,439)	(6,062)	(14,439)	(6,062)
Purchase, services and other direct
costs		(6,502)	(4,270)	(6,502)	(4,270)
Depreciation, depletion and
amortisation		(20,071)	(9,841)	(20,071)	(9,841)
Distribution expenses		(2,879)	(2,288)	(2,879)	(2,288)
Employee compensation costs		(3,265)	(2,270)	(3,265)	(2,270)
General and administration
expenses		(1,397)	(1,204)	(1,397)	(1,204)
Other operating income/(expenses)
- net		73		(1,440)		73		(1,440)
Total operating expenses		(48,480)		(27,375)		(48,480)		(27,375)
Profit/(loss) from operations		2,739	(4,318)	2,739	(4,318)
Finance income		10,803	14,970	10,803	14,970
Finance cost		(18,603)		(12,576)		(18,603)		(12,576)
Finance (cost)/income - net		(7,800)		2,394		(7,800)		2,394
Loss before taxation	B13	(5,061)	(1,924)	(5,061)	(1,924)
Income tax benefit	B14	7,995		4,974		7,995		4,974
Profit for the financial period		2,934	3,050	2,934	3,050
Profit/(loss) attributable to:
Owners of the Company		366	20,245	366	20,245
Non-controlling interests		2,568		(17,195)		2,568		(17,195)
Profit for the financial period		2,934	3,050	2,934	3,050
Profit per share attributable to
owners of the Company	B12
Basic loss per ordinary share (RM):		0.0003	0.02	0.0003	0.02
Diluted loss per ordinary share (RM):		0.0003	0.02	0.0003	0.02
Profit for the financial period		2,934	3,050	2,934	3,050
Other comprehensive
income/(expense), net of tax
Items that will be reclassified
subsequently to profit or (loss):
- Foreign currency translation
differences		610	(2,737)	610	(2,737)
Total comprehensive income for the
financial period		3,544		313		3,544		313

The unaudited condensed consolidated statement of comprehensive income should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2021 and the accompanying explanatory notes.

1

REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONT'D)

INDIVIDUAL

INDIVIDUAL

CUMULATIVE

CUMULATIVE

QUARTER

QUARTER

QUARTER

QUARTER

Unaudited for

Unaudited for

Unaudited

Unaudited

the quarter

the quarter

for the year

for the year

ended

ended

ended

ended

31 Mar 22

31 Mar 21

31 Mar 22

31 Mar 21

Note

RM'000

RM'000

RM'000

RM'000

Total comprehensive

income/(expense) for the period

attributable to:

Owners of the Company

732

18,603

732

18,603

Non-controlling interests

2,812

(18,290)

2,812

(18,290)

Total comprehensive income for

the financial period

3,544

313

3,544

313

The unaudited condensed consolidated statement of comprehensive income should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2021 and the accompanying explanatory notes.

2

REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		Unaudited		Audited
		As at 31 Mar 22		As at 31 Dec 21
	Note	RM'000		RM'000
Assets
Non-current assets
Property, plant and equipment		1,284,579	1,284,517
Intangible assets		1,241	1,299
Right use of assets		2,281	2,339
Prepayment and other receivables		3,502	3,469
Restricted cash		8,833	8,480
Total non-current assets		1,300,436		1,300,104
Current assets
Inventories		43	1,677
Trade receivables		7,929	849
Prepayment and other receivables		18,978	18,427
Amount due from corporate shareholder in a subsidiary		4,064	4,064
Deposits, cash and bank balances		25,108	44,452
Total current assets		56,122		69,469
Total assets		1,356,558	1,369,573
Liabilities
Current liabilities
Trade payables		73,887	69,536
Accruals and other payables		29,333	29,191
Lease liabilities		482	538
Amounts due to corporate shareholder in a subsidiary	A7	9,286	361,695
Current tax liabilities		2,938	2,877
Short term borrowing	A7	2,485	15,097
Provisions		765	17,730
Total current liabilities		119,176		496,664
Net current liabilities		(63,054)	(427,195)
Total assets less current liabilities		1,237,382	872,909
Non-current liabilities
Deferred tax liabilities		61,523	69,170
Amounts due to corporate shareholder in a subsidiary	A7	731,110	362,465
Trade payables		9,097	9,048
Lease liabilities		1,570	1,654
Long term borrowing	A7	23,899	23,740
Provisions		3,737	3,930
		830,936		470,007
Net assets		406,446	402,902
Equity
Capital		488,975	488,975
Other reserves		180,797	180,431
Accumulated losses		(365,840)		(366,206)
Equity attributable to owners of the Company		303,932	303,200
Non-controlling interest		102,514	99,702
Total Equity		406,446		402,902
Net assets per share (RM)		0.37	0.37

The unaudited condensed consolidated statement of financial position should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2021 and the accompanying explanatory notes.

3

REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	ß-----------------------	Attributable to Equity Holders of the Company -------------------------	à
	ß------------------------	Non-distributable -------------------------	à
					Share-
					based	Foreign			Non-
				Warrants	payment	exchange	Accumulated		controlling	Total
			Capital	reserve	reserves	reserve	losses	Total	interest	Equity
			RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000
As at 1 January 2022	488,975	198,914	821	(19,304)	(366,206)	303,200	99,702	402,902
Profit for the financial year
	-	-	-	-	366	366	2,568	2,934
Other comprehensive income, net of tax
- Foreign currency translation		-	-	-	366	-	366	244	610
Total comprehensive income for the financial year	-	-	-	366	366	732	2,812	3,544
As at 31 March 2022		488,975	198,914	821	(18,938)	(365,840)	303,932	102,514	406,446

The unaudited condensed consolidated statement of changes in equity should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2021 and the accompanying explanatory notes.

4